checking accounts

• A bank reconciliation is a report that accounts for the difference between the bank statement and your checkbook register balance.
• Carrying out this process is often called “balancing your checkbook”.
• Bank Statement: Twelve times a year your bank sends you a statement listing all the activity in your account for a specific period of time.
• Canceled Check: A check you have written that has been processed and paid by your bank.
• Outstanding Check: A check you have written that has not yet been paid by your bank.
• Voided Check: A check you wrote that was a mistake and will never be paid or used.
• The bank does NOT usually know about your voided checks
• Deposit in Transit: A deposit you have made and recorded in your check register but has not been "cleared" by the bank in time to appear on your statement or account balance.